fred_hepner | Performer |
7/29/2009 - 5:56 pm

An often overlooked issue comes to mind with your original question. This issue deals with registration of the business name. For example, here in Texas a business owner may register an assumed name in one or more counties, for example the county of business operations. Someone in another county may have registered the same business name at an earlier date. The owners do not know about the separate registrations. A dispute over the use of the name might surface later, when the first registrant finds out about the second registrant.
Here is more 'fuel for the fire.' An owner may subsequently want to create a legal entiy, for example a corporation, by filing the necessary registration papers with the Secretary of State. At the time of filing, the existing buisness may find that their name is already registered by another existing business at the state level. The new registrant finds a conflict and will be informed by the Secretary of State that they must get permission from the current registrant to use the name. The current registrant probably will deny permission. A dispute may begin between the registrants.
Ah, but we are not done. Someone who registered a federal trademark of the name may hold a superior position to use the name. They may have registered the name at the federal leveal and essentially told the rest of the world that they have first divs on the use of the business name. Companies who register a federal trademark usually plan to defend their position in court.
The use of cease and desist letters seems to be surfacing more in recent years, as companies protect their names and domain names. When I set up business entities for clients it is really getting hard to find names for businesses. A legal fight to prove and protect your business name can be expensive.
You may want to do a preliminary check of your business name in Georgia and at the federal level. It could be that you have been flying under the proverbial radar in California and your move to do business in Georgia may draw attention now. If you are in the clear, you may want to consider registering your business name as a tradmark. It can be expensive creating new invoices, cards, stationary, etc.
Also, be sure to have a Georgia attorney check to see if you need to register your California entity as a foreign corporation doing business in Georgia. Some states require out-of-state corporations to register as foreign coporations. Failure to register can forfeit state law protections.
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